Bitcoin Price Analysis: BTC Reclaims $110,000 As Markets Rebound

Bitcoin (BTC) has climbed above $110,000 as the cryptocurrency market rebounds, buoyed by a potential Fed policy shift and positive developments after the latest trade tensions between the US and China. 

However, market sentiment remains cautious, with the Crypto Fear & Greed Index still in “Fear” territory at 30. 

Bitcoin Profit Taking Keeping Prices Subdued 

Analysts believe Bitcoin’s price action will remain subdued until long-term holders take profits. According to analyst James Check, the crypto market’s failure to recover was due to selling pressure, not manipulation, paper Bitcoin, or suppression. According to Check, the volume of sell-side pressure from Bitcoin holders is the source of resistance at the moment. According to crypto investor Will Clemente, the last year of relative weakness for the flagship cryptocurrency has largely been due to a supply transfer from Bitcoin OGs to traditional finance. 

“This dynamic will be mostly irrelevant in the coming years, just as everyone is focused on BTC’s relative weakness.”

Galaxy Digital CEO Mike Novogratz echoed the same sentiment in an interview with Raoul Pal, stating, 

“There are a lot of people in the Bitcoin world who had rode this so long and finally decided, ‘I wanna buy something. People trimming because they’ve had a great run and we’re just digesting that turnover.”

Meanwhile, BTC held on to a key level between $108,000 and $109,000, with analyst Rekt Capital stating, 

“Continued holding here could see the price rally to $120k+ over time. Stability here is absolutely key.”

Strategy Can Convert Capital Into Bitcoin (BTC) In Hours: Michael Saylor 

Strategy executive chairman Michael Saylor has said that Bitcoin treasury companies like Strategy can turn fresh capital into BTC almost instantly. Saylor also posted a fresh teaser about another BTC purchase on Sunday. The Strategy executive chairman stated during an interview, 

“The investment cycle is a thousand times faster than technology, real estate, oil and gas, or anything else you’ve ever seen before in your life. Sometimes we’re literally selling 50 million an hour or 100 million an hour and buying the $100 million of Bitcoin the same hour. Like we could do a billion dollars of capital raising in a day, and we might have 20 million of exposure at 4 pm, and by 5 pm, 6 pm, we’re fully done.”

Strategy is preparing to buy more BTC even as treasury companies face growing pressure after a sharp drop in net asset value (NAV). Strategy’s BTC purchases are often viewed as a bullish catalyst for the asset. Strategy is the largest corporate holder of BTC, with 640,250 BTC after its latest purchase on October 13. According to Saylor, Strategy can accumulate BTC and provide a return for investors far quicker than other avenues. 

“You can essentially sell it before you build. We’re literally building it in real time. We’re open for business every day with four credit ATMs. If someone hit the bid and wanted to buy $500 million in a minute, we could build a building in a minute. In 60 seconds. Trade is done. Cash changes hands. We create the collateral. We bought the Bitcoin underlying that day.”

Most Institutions Retain Positive Bitcoin Outlook 

A survey by Coinbase has revealed that almost two-thirds of institutional investors retain a positive outlook for Bitcoin. David Duong, head of research at Coinbase Institutional, stated in a research report that most respondents are bullish about Bitcoin over the next few months. The institutional investor survey had 124 respondents, with 67% reporting a positive outlook. Duong also added that Bitcoin treasury companies were buying the dip, stating, 

“Looking at the supply/demand picture, it’s hard to overstate the impact that digital asset treasury companies have had on markets this year.”

Bitcoin (BTC) Price Analysis 

Bitcoin (BTC) has made a strong start to the week and has reclaimed the $110,000 level. The flagship cryptocurrency fell to an intraday low of $103,516 on Friday but recovered over the weekend, rising 0.70% on Saturday and 1.37% on Sunday to settle at $108,676. The price is up almost 2% during the ongoing session, trading around $110,697. 

Selling pressure eased over the weekend, allowing BTC to recover. However, analysts expect markets to remain volatile, and investors will be cautious ahead of the FOMC meeting. Daan Crypto Trades stated in a post on X, 

“Volatility is definitely high here due to the thin books post this massive market flush. Books are thin. Especially after the massive liquidation event last week. This combined with weekend price action and a lot of emotional traders makes for relatively volatile moves on low timeframes.”

Meanwhile, data from CoinGlass put liquidations over the past 24 hours at over $200 million.  One of the biggest reasons behind the market rebound is confirmation that senior Chinese officials will be meeting with representatives from the US to resolve trade issues ahead of the APEC summit in South Korea. 

Analysts believe several near-term catalysts are driving the recovery. The Federal Reserve’s FOMC meeting is set for October 28-29, with investors anticipating a 25 bps rate cut. Lower interest rates typically weaken the dollar and support risk assets like BTC. New spot ETF filings have also buoyed investor sentiment, helping price recovery. Analysts believe approval of the ETF proposals of the XRP and Solana ETFs could boost institutional capital and further strengthen the market. 

BTC and the broader crypto market crashed last Friday (October 10), after President Trump announced 100% tariffs on Chinese goods and new export controls for software. The announcement was made in retaliation for China's imposition of restrictions on rare earth mineral exports. As a result, BTC plunged to $102,000 on Binance before recovering and settling at $112,980. Selling pressure persisted on Saturday as the price fell almost 2% to $110,768. Despite the overwhelming selling pressure, markets recovered on Sunday as BTC rose nearly 4% to reclaim $115,000 and settle at $115,067.

Source: TradingView

The price faced selling pressure and volatility on Monday, ultimately registering a marginal increase and settling at $115,274. Selling pressure returned on Tuesday as BTC fell to an intraday low of $109,945. It recovered from this level to reclaim $113,000 and settle at $113,068, ultimately dropping 1.91%. Sellers retained control on Wednesday as the price fell 2% to $110,804. Bearish sentiment persisted on Thursday as BTC fell below $110,000 and settled at $108,198. The price plunged to a low of $103,516 on Friday as selling pressure intensified. However, it recovered from this level to settle at $106,463, ultimately dropping 1.60%. BTC rose on Saturday, rising 0.70% to reclaim $107,000 and settle at $107,208. Buyers retained control on Sunday as the price rose over 1% to cross $108,000 and settle at $108,676. The flagship cryptocurrency is up almost 2% during the ongoing session, trading around $110,700.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.